Solo 41k S-Corporation Controlled Group Question

QUESTION:

I have a S-Corp, 100% owned by me, I pay myself on W2. Let's call this S-Corp as "MySCorp".
My wife has a S-Corp, 100% owned by her, and has a full time employee on W2. Let's call this as "WSCorp"

Now, all of MySCorp's revenue is coming from WSCorp. I do consulting on behalf of WSCorp for it's clients and I bill WSCorp for my work.

The business relationship is like: I perform consulting work for end-clients on behalf of WSCorp, WSCorp bills the end-client for the consulting work I did. I bill the WSCorp from MySCorp for the service I provided.

Here are my questions:

Can I start Solo 401k for myself from MySCorp? If yes, the next question is: can i bring my wife on to MySCorp's payroll and have her as part MySCorp's solo 401k plan?

ANSWER:

You both would not be able to open a Solo 401k because your wife has a full-time employee, and due to the affiliated service group rules, you would be considered affiliated to her business. Furthermore, your situation could also be a controlled group because the default is that ownership held by a spouse is attributed to other spouses for purposes of analyzing whether a controlled group.